Speed Company Has Current Assets of $150,000 and Current Liabilities

question 28

Multiple Choice

Speed Company has current assets of $150,000 and current liabilities of $60,000.How much inventory could it purchase on account and achieve its minimum desired current ratio of 2 to 1?

• A)$10,000
• B)$20,000
• C)$30,000
• D)$40,000

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Definitions:

Outcomes Of Actions

The results or consequences that follow from specific actions or decisions made by individuals or organizations.

Pleasing Others

The act of making an effort to satisfy or meet the expectations of other people, often prioritizing their happiness or approval.

Winning Approval

The process of gaining acceptance or endorsement from stakeholders, authorities, or specific groups, often in the context of business initiatives or projects.

Deontology

A branch of ethics focused on the morality of actions based on a set of rules, rather than on their consequences.